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TEKELEC INVESTS TOTAL OF $16.5 MILLION IN TELICA AND BROADSOFT.


Tekelec (Nasdaq:TKLC), Calabasas, Calif., has strengthened its collaborative efforts with two leading vendors of packet telephony solutions, Telica and BroadSoft, and has made separate strategic investments in each privately-held company, investing a total of $16.5 million.

Tekelec and Telica have advanced their cooperative work to ensure that their solutions will interwork seamlessly in packet telephony applications. Recent collaborative activities between the two companies include the laboratory deployment of Tekelec's IP7 Secure Gateway with Telica's Plexus 9000 range of packet telephony solutions via the SCTP / M3UA IP signaling protocol defined by the SIGTRAN working group of the International Engineering Task Force (IETF). Separately, Tekelec participated in Telica's recently-completed third round of financing as a strategic corporate investor.

In addition, Tekelec has entered into a non-exclusive reseller agreement with BroadSoft, building upon the marketing alliance jointly announced at SuperComm 2001. Under the terms of the new agreement, Tekelec will resell BroadSoft's BroadWorks service delivery platform to its service provider customers in conjunction with Tekelec's VXi Media Gateway Controller, IP7 Secure Gateway and related solutions. Separately, Tekelec participated in BroadSoft's current round of financing as a strategic corporate investor.

Tekelec president and CEO Michael Margolis commented, "As articulated in the past, at Tekelec we are firm believers that circuit switching infrastructure will eventually give way to newer and more efficient packet telephony solutions. Our leadership in signaling over Internet Protocol (IP) is evidence of Tekelec's early appreciation of the Internet and our industry's evolution towards packet technologies."

Margolis continued, "Our `next-gen' strategy is to position Tekelec so that we can benefit from the migration to IP-based networks without hinging our fortunes to a particular rate of adoption. By extending our range of alliances with vendors of complementary solutions today, we are confident that Tekelec will be well positioned to benefit when the packet telephony market matures beyond its current stage of early deployments. Investing a modest portion of our strong cash flows into strategic partners increases the likelihood of a successful collaboration, and bolsters our outlook within a market that we expect to become one of the largest opportunities Tekelec has ever addressed."

About Telica

Telica provides innovative softswitch-based voice and data infrastructure products for today's evolving telecommunications networks. The company's Plexus 9000 is an intelligent switching platform that offers economic and competitive advantages to service providers. This carrier-grade system encompasses both switching equipment and software to enable voice and data services to be delivered over the PSTN as well as ATM and IP networks -- all in a distributed softswitch model or an integrated open solution that reduces network complexity and cost. Breakthrough levels of density, performance, reliability and scalability assure the highest quality of service while easily accommodating subscriber growth. Telica, founded in 1998, is headquartered in Marlboro, Mass with offices throughout the United States and Canada.

For more information on Telica, visit http://www.telica.com.

About BroadSoft

BroadSoft, Inc, is the leader in voice applications and servers for integrated communications providers (ICPs). BroadWorks, the company's flagship product, allows service providers to rapidly and economically design and deploy web-enabled enhanced telephony services to their customers. BroadSoft has received extensive industry recognition including recognition as a "Hot Start-Up" by America's Network and Telecommunications magazines, two of the leading telecommunications industry publications. BroadWorks was also recognized as Product of the Year by Communications Solutions and Internet Telephony magazines. BroadSoft is located near Washington, DC, in Gaithersburg, Maryland, and also maintains a research and development facility in Montreal, Canada.

For more information, visit http://www.broadsoft.com.

About Tekelec

Tekelec is a leading developer of telecommunications signaling infrastructure, packet telephony solutions, diagnostic tools, and value-added applications. Tekelec's innovative solutions are widely deployed in traditional and next-generation wireline and wireless networks and contact centers worldwide. Corporate headquarters are located in Calabasas, California, with research and development facilities and sales offices throughout the world.

For more information, visit http://www.tekelec.com or call 818/880-7821.

COPYRIGHT 2002 Worldwide Videotex Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

NOTE: All illustrations and photos have been removed from this article.


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